Invest In India
LEATHER INDUSTRY
- Indian leather industry accounts for 12.9% of the global leather production of hides/skins, 9% of world’s
footwear production.
- This industry is among the top ten foreign exchange earners for India.
- India witnesses abundance of raw material with access to 20% of world’s cattle and buffalo and 11% of
the world’s goat and sheep population. 3 bn sq. ft. of leather is produced annually.
- Rapid strides have been made in capacity modernization and expansion, providing high growth potential
on exports.
- Employs one of the youngest workforces with 55% of the workers below 35 years of age.
- The domestic market for fashion accessories is expected to double, providing a strong market advantage.
- Major markets for Indian leather products are USA, UK, Germany, Italy, France, Spain, UAE, Netherlands,
Hong Kong, China, Poland and Belgium.
- Comparative advantage in labor costs and production costs vis-à-vis other manufacturing countries.
- This sector receives favorable government support. Apart from assistance to states for infrastructure
development, GST concessions on leather industry items has also been provided-
- Finished leather- from 12% to 5%
- Certain leather chemicals, leather goods, leather garments and saddlery-from 28% to 18%
- Common Effluent Treatment Plants (CETP)- from 18% to 12%
- Job work-from 18% to 5%
- Footwear- from 18% to 5%
- About 2% across the board enhancement of duty credit scrip under Merchandise Exports from India
Scheme (MEIS) for shipments made from 1 November 2017.
- Some of the major investors in India include Apache Group, Louis Vuitton, Feng Tay Group, Heromount,
and ZF.
